Time for some competition!

There's no doubt about it, we’re paying more at the supermarket checkout these days.

But is it simply because of the drought, or is there something more sinister to the price increase?

Coles and Woolworths could have their business practices investigated if Federal Labor wins the upcoming election, and both companies would be feeling uneasy about the scrutiny, according to a former consumer watchdog head.

Professor Allan Fels, former Australian Competition and Consumer Commission (ACCC) head said Labor’s proposed inquiry into supermarket retailing needed to look at competition, not just prices.

He said the supermarket giants would be nervous about the proposed inquiry as suppliers and others would be given the opportunity to criticise their business practices.

“A lot of people will come out of the woodwork, including suppliers,” Professor Fels said.

“There will be allegations of predatory behaviour by various competitors; there will be concerns about the spread of the role of retailers into a whole lot of other areas.”

Maroochydore’s Tracey Cheney said she shopped fortnightly, and had noticed a significant increase in her supermarket bill over the last 12 months.

“I’m paying around $50-$60 more per fortnight,” she said.

Ms Cheney said most of what she purchased from the supermarket were packaged items, as she went to market stalls for fruit and vegetables, and to small business for meat.

She chose to shop at Woolworths in Maroochydore based on convenience, and said she wouldn’t be swayed to shop somewhere else even if it was cheaper.

The latest Choice magazine survey showed a 12% increase in the cost of a basket of 33 items since 2003.

The items which had increased the most in price were canola oil (45%), white sugar (23%) and Goulburn Valley Peach slices (46%).

Choice said it had no evidence of supermarket chains colluding on price, but added that Labor’s proposal would ensure that consumers were protected from that ever happening.